Western Union Fined $60 Million for Anti-Money Laundering & New York Banking Secrecy Violation

Western Union Fined $60 Million for Anti-Money Laundering & New York Banking Secrecy Violation

Western Union has agreed to pay $60 million fine for breaching anti-money laundering (AML) and New York Bank Secrecy Act through a consent order issued by the New York Department of Financial Services (DFS). Western Union executives and managers had ignored and failed to report high volume of suspicious money transfer transactions originating from agents in New York and around the world to its locations in China. The transactions may also have aided in human trafficking.

“ One Western Union Agent in Lower Manhattan processed more than $1.14 billion of money transfers between 2004 and 2011 “

Many of these agents are small businesses but are some of Western Unions largest agent locations in the world by transaction volume and are extremely profitable. One Western Union agent in Lower Manhattan alone, processed more than $1.14 billion of money transfers and 447,000 transactions between 2004 and 2011.

Investigations had discovered the company had failed to establish and maintain an anti-money laundering compliance program during its operation from 2004 until 2012. DFS licenses and regulates money transmitters in New York State, and is the sole regulator for Western Union in New York State.

We are a leader in global payment services. From small businesses and global corporations, to families near and far away, to NGOs in the most remote communities on Earth, Western Union helps people and businesses move money – to help grow economies and realize a better world. In 2016, we completed 791 million transactions for our consumer and business clients. We continue to innovate, developing new ways to send money through digital, mobile, and retail channels, with an array of convenient pay-out options to meet business and consumer needs.

The New York State Department of Financial Services was created by transferring the functions of the New York State Banking Department and the New York State Insurance Department into a new department. This transfer of functions became official on October 3, 2011.